FACULTY OF MANAGEMENT AND SOCIAL SCIENCES

ACTG1014: CHP 3 – THE ADJUSTING PROCESS

Assignment # 2 Due: Monday, March 13, 2023 21 pts total

Name(s): ______________________ and __________________

YAY! This assignment can be done with a partner or individually - if done with a partner, submit
one answer sheet and state both names on the answer sheet. Your work must be computer
generated, printed and submitted as a hard copy at the beginning of class.
Please do not wait until last minute to submit your work.

Jane’s Spa and Massage Center has the following unadjusted trial balance as of March 31, 2021:

Accounts Debit Credit

Cash 39,100
Accounts Receivable 2,000
Supplies (candles, massage oil, etc) 1,600
Prepaid Rent 6,500
Massage table 3,000
Accumulated depreciation - massage table 450
Furniture 8,000
Accumulated depreciation - furniture 950
Accounts Payable 8,500
Unearned Fees 9,300
Ed. Chiac, capital 13,000
Ed. Chiac, drawings 12,000
Service Revenue 44,300
Salary expense 1,800
Repairs expense 2,500
$76,500 $76,500

The following adjustment data were assembled and analyzed on March 31, 2021, by L. Pagoada,
who is the Accountant for Jane’s Spa and Massage Center.

A) Massage services provided but not yet billed to customers totals, $3,000
B) Supplies on hand was $1,200.
C) Depreciation of the massage table, $100.
D) Depreciation of the furniture, $1,500.
E) Unearned fees now earned, $6,000.
F) Salary accrued, $900.
G) Rent unexpired $4,000.
 Instructions:

1. Journalize the adjusting entries on March 31, 2021. State the narratives. (10
pts)
2. Prepare an adjusted trial balance at March 31, 2021. (7 pts)
No end of period spreadsheet is needed. If you do it, no need to submit it.
3. Choose any 1 adjustment from (a) to (g); and, explain how the income
statement and the balance sheet would be affected if the Accountant failed to
do (omitted) the adjusting entries for the 1 adjustment that you chose. (4 pts)
To get full points, kindly ensure that you EXPLAIN your answer.

GRADING RUBRIC

Assignment 2: Adjusting Entries Due Date: (Week 7 postponed to Week 8)

GRADING CRITERIA
Worth 21 points = 100%
Maximum
Points
Journalizing adjusting entries 10 points
All correct entries and/or narratives given = 10 pts
Much correct entries and/or narratives given = 7 to 9 pts
Some correct entries and/or narratives given = 4 to 6 pts
Few correct entries and/or narratives given = 1 to 3 pt(s)
No correct entries and/or narratives given = 0 pt
Adjusted Trial balance 7 points
0 error = 7 pts
1 – 3 errors = 4 to 6 pts
4 – 5 errors = 2 to 3 pts
More than 5 errors = 0 to 1 pt
Explanation of Effects on financial statements due to the omission of 4 points
adjusting entries
MAXIMUM POINTS 21 points